OTA & Travel Distribution Update: Sabre/FareLogix saga continues to unfold; Groups360 receives a significant investment

Foster Garvey PC

With summer coming to an end, I anticipate a healthy dose of Update worthy items in the weeks ahead. 

The Sabre/FareLogix Saga Continues to Unfold
Last week we featured a story detailing the US Justice Department’s planned litigation against Sabre should it carry through with its announced plans to close its FareLogix acquisition last week.  By now, everyone knows that the Justice Department made good on its promise and has likely read the dozens of stories detailing the many factual allegations behind the claims.  We’ve included a copy of the Justice Department’s complaint for those interested in seeing first-hand the Justice Department’s apparent new approach to anti-trust enforcement where dominant industry members seek to “stamp out” their upstart (and potentially disruptive) competitors. 

Groups360 Receives a Significant Investment
("Marriott, IHG, Accor and Hilton Invest in Meetings Booking Platform," Skift Travel News on Aug 19, 2019) 
What makes the recently announced investment in the online group booking engine so significant isn’t only the amount of the investment ($50 million), but also the companies that invested – Marriott, IHG, Accor and Hilton.  With the investment, each of the named hotel companies will now have a seat on Groups360’s board and a hand, according to Groups360’s Chairman, David Kloeppel, in improving the meeting planner shopping experience (and the lead generation experience for hoteliers).   Although currently not offered by Groups360, instant booking for small meetings is on the horizon.  Will this be a game changer in the group segment, stay tuned...

Other news:

Are TripAdvisor and other travel companies censoring their reviews?
USA Today - Technology News on Aug 23, 2019
Many travelers rely heavily on online reviews to make decisions. But what happens when some of those reviews turn out to be bogus? When Mike Gnitecki left a so-so review online for the Omni Shoreham Hotel in Washington, D.C., he expected his comments to stick...

Hostelworld Wants to Offer More Than Just Accommodations
Skift Travel News on Aug 21, 2019
Hostelworld CEO Gary Morrison has only been in the job for a little over a year but he’s wasted little time in changing things up at the online accommodations company. Gone are the eye-catching celebrity advertising campaigns with the business looking at ways it can instead go deeper with its ...

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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